Finance jobs explained like you're 5 years old

Finance jobs explained like you're 5 years old. 1. Private Equity. Private equity buy companies who are doing shit, mostly borrowed money, restructure, fire a lot of people, cut costs, increase the company's overall value in like two to seven years and then sell them for like two to ten times the price that you bought them at. And of course your returns are amplified because you used borrowed money to buy them in the first place. That's called leverage. 2. Hedge Fund Manager. Managers pulled money from wealthy people or institutions to invest and generate more wealth for them. They use aggressive strategies, long shorts, derivatives, leverages, betting on stocks going up, all down to the fee they normally get, 2% of all the assets managed and 20% of all profits made. 3. Investment Banker. You help companies raise money or sell themselves to bigger companies. Think about a huge merger or an IPO, it runs through an investment bank every single time. Fees usually charged as a percent of the deal. If you're looking at a billion dollar transaction, you see how that could be a lot of money.